Reckitt Benckiser: Delhi HC stays NAA order to deposit Rs 63 lakh profiteered from Dettol handwash

The court also issued notice to the Ministry of Finance, NAA and the Director General of Anti-Profiteering (DGAP), represented by central government standing counsel Ravi Prakash and advocate Farman Ali Magray, seeking their stand on the plea by August 24.

The DGAP, in its investigation, had found that Reckitt Benckiser had between November 2017 and March 2019 profiteered by Rs 63,14,901 by not passing on to consumers the benefit of GST reduction (on Dettol hand wash) by reducing its prices accordingly.

The GST reduction had come into effect from November 15, 2017.

Reckitt Benckiser, in its plea, has contended that it had passed on the benefit of GST reduction by way of "grammage increase".

However, the NAA said the benefit has to be passed on to consumers in monetary terms, the petition has said.

It has also contended that the investigation was ordered after the time limit -- of two months from receipt of a complaint -- for such an action had expired.

It has claimed that the complaint was filed in July 2018 and the order for investigation was issued in March 2019, much beyond the two month statutory limit.

According to the petition, the NAA has claimed the initial complaint of July 2018 was returned and thereafter, in February 2019 another complaint was made and on that an investigation was ordered.

Reckitt has contended that it was not provided with the second complaint nor was it referred to in any of the notices issued to it so far or in the proceedings held before NAA.

Read also: Trademark Infringement: Firm Restrained By HC From Launching Hand Sanitizer Named DEVTOL